Ofgem price cap announcement: national charity warns of deepening energy debt crisis for UK’s poorest.
Following the announcement of a 2% increase in the energy price cap today, Christians Against Poverty (CAP) is warning that millions of people of households on the lowest incomes will struggle to afford their energy bills this winter.
Ofgem has highlighted that volatile energy markets, along with proactive government measures such as the expansion of the Warm Home Discount in June, are key elements in this energy price cap increase. The extension of the vital discount will encompass an extra 2.7 million people, bringing the total number of recipients up to six million. To account for this additional cost, all billpayers contribute to a fund, mainly through a higher cost of connecting to the supply, called a standing charge.
Despite the expansion of support, the combined effect of today’s 2% rise following the 6.4% rise in February, has added an extra £35 per year to an average household’s energy bills, increasing them to £1,755, and potentially pushing more families into hardship.
CAP’s Chief Executive Officer, Stewart McCulloch, highlights the ongoing, severe impact of unaffordable energy bills on the people they serve:
“The reality for the thousands of people we serve each year remains desperate and many millions across the UK are already in crisis, unable to afford basic essentials like keeping their homes warm and the lights on. This news builds on the recent disappointing news on inflation and particularly food inflation.”
At CAP, we see the devastating impact of this every day. Poverty, driven by unmanageable bills like energy debt, destroys lives. It robs people of joy, hope, and opportunity, leaving them isolated in damp, dark homes. This isn’t just a financial issue, it’s a severe mental health crisis. Half of our clients tell us they had considered or attempted suicide before seeking our help.
Stewart McCulloch, CAP’s Chief Executive Officer
“The rising cost of living has already pushed so many to the brink. Our latest national polling shows that due to financial challenges, in the past 12 months:
23%
of UK adults reduced the amount of time they heat their home
14%
of UK adults have gone without heating their home altogether
“We welcome the warm home discount and other proactive measures for those struggling, but must point out that more is needed.
“Our previous research showed that over 11.6 million people in the UK have a deficit budget, meaning their income simply doesn’t cover their essential costs. For them, any energy cost increase is a source of immense financial strain, trapping them in a cycle of borrowing to survive and making it impossible to escape poverty.
“On a daily basis, our debt coaches provide free, face-to-face help, creating tailored debt management plans to make energy bills affordable and negotiating with creditors. But more than that, we provide vital emotional and community support through our network of local church partners, helping to reduce the isolation and despair that debt causes. Through practical tools, grants for urgent costs, and a supportive community, we help people find long-term financial resilience.
“However, charitable support cannot be the only solution. We must tackle the root causes. We reiterate our call on the Government to establish an Essentials Guarantee—a protected minimum amount of social security that ensures the basic rate always covers life’s essentials. Support must never be pulled below a level where people can afford to eat and heat their homes.
No one should be caught in the vicious cycle of debt because their income does not cover the cost of survival. We urge policymakers to look beyond the numbers and see the human cost. We need decisive action now to ensure everyone has enough to live with dignity.
Stewart McCulloch, CAP’s Chief Executive Officer
